Frost & Sullivan: DoD’s FY 2018 Budget Plan Reflects Increase in Operations & Maintenance, R&D Accounts

Frost & Sullivan report has found the Defense Department‘s budget request for fiscal year 2018 represents a 9 percent rise, or approximately $52 billion, over the FY 2017 budget plan with significant increases in operations and maintenance as well as research, development, testing and evaluation accounts.

The market research firm said Wednesday it predicts DoD to increase annual spending through 2022 to meet modernization and capability requirements as the department works to implement acquisition reforms and achieve efficiencies across financial, program and administrative areas.

Frost & Sullivan analyzed the Pentagon’s fiscal 2018 budget for the U.S. DoD Budget Assessment, 2018–2022 report and found that the U.S. Air Force would get the largest share of funds.

Some of DoD’s operational priorities under the FY 2018 proposed budget include the development of hypersonic and laser weapon platforms, computer networks and missile defense systems, according to the report.

The report also noted a funding increase for classified programs under DoD’s FY 2018 budget and the potential award of $35.8 billion in prime contracts to Lockheed Martin.

Brad Curran, principal analyst for aerospace and defense at Frost & Sullivan, said military efforts against the Islamic State organization and other terrorist groups have driven updates to targeting tools and command, control, communications, computers, intelligence, surveillance and reconnaissance systems in Africa and the Middle East.

Curran also noted that the U.S., Japan, Germany and other allies have initiated efforts to modernize their C4ISR platforms and weapons systems amid threats posed by Russia, China, Iran and North Korea.

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